Vanilla Gift Card $1.53M California Class Action Settlement

California residents who purchased or received a non-reloadable Vanilla prepaid gift card in California between Nov. 1, 2019, and Sept. 30, 2024, and could not use some or all of the funds due to unauthorized charges caused by package tampering may be eligible to claim up to the full value of their lost funds from a class action settlement.

InComm Financial Services Inc. agreed to pay $1.53 million to settle a class action lawsuit alleging its Vanilla gift cards were vulnerable to theft due to insufficient packaging security and that the company often denied refunds to cardholders with stolen funds.

Who can file a claim?

Class members must meet all of the following criteria:

• They are a California resident.
• They either:
• Purchased a non-reloadable Vanilla gift card in California between Nov. 1, 2019, and Sept. 30, 2024, OR
• Received a Vanilla gift card purchased in California during that period, including as a gift or by other lawful means

• They could not use some or all of the money on their Vanilla gift card because of unauthorized charges, which they believe resulted from someone tampering with the card’s packaging.
• They did not previously receive a refund from InComm for the lost funds.

How much can class members get?

The settlement administrator will distribute the $1.53 million settlement fund as follows:

• Class members who submit a valid claim with a complete proof of claim, including receipt, photos of the card, transaction history and any correspondence with InComm, are eligible to receive the full value of the funds they lost on each eligible card. There is no limit to the number of claims a class member can submit with full documentation.
• Class members who submit a valid claim without any proof of claim are eligible for a flat payment of up to $15 per card with a maximum of two cards ($30 total). Class members who submit one or two claims without documentation can still submit unlimited claims with documentation for other cards.
• Class members who submit a valid claim with incomplete proof of claim (some but not all of the required documentation) may be eligible for up to 75% of their reported lost funds for each card, depending on the documentation they provide.

After the administrator reviews all claims, it may adjust payments for claims without proof of claim up or down depending on the number and value of valid claims compared to the settlement fund. This will. not affect claims with proof of claim.

How to claim a class action payment

Class members must submit an online claim form or print and complete the claim form at the same link and mail it along with any supporting documentation to the settlement administrator. Class members who have more than one eligible Vanilla gift card may submit claims for multiple cards using the same claim form.

Settlement administrator's mailing address: Gift Card Claims Administrator, P.O. Box 301132, Los Angeles CA, 90030-1132

The deadline to file a claim is Feb. 19, 2027.

What proof or documentation is required to submit a claim?

Class members can submit a claim without documentation for a flat payment. Those providing proof of claim documentation are eligible for a higher payment. Incomplete documentation may still increase class members' payments compared to submitting no documentation.

Proof of claim may include:

• Receipt for the Vanilla gift card purchase
• Photos of the front and back of the card
• Transaction history for the card with notes on which transactions the class member believes were fraudulent (available at https://balance.vanillagift.com/)
• Any correspondence with InComm about the class member's refund request if applicable

Payout options

• Class members who file online can choose to receive payment electronically (Venmo or PayPal) or by check.
• Class members who file by mail will receive payment by check sent to the address provided.

$1.53 million settlement fund breakdown

The $1,525,000 settlement fund includes:

• Settlement administration costs: Amount not specified
• Payments to eligible class members: Remainder of the fund

The settlement administrator will donate any residual funds to the San Francisco City Attorney’s Office for future consumer protection.

Important dates

Deadline to file a claim: Feb. 19, 2027

When is the Vanilla gift card restitution payout date?

The settlement administrator will issue payments to eligible class members by approximately June 19, 2027.

Why is there a class action settlement?

The class action lawsuit alleged InComm Financial Services failed to provide adequate security for Vanilla gift cards, making them vulnerable to theft through package tampering. The lawsuit also claimed InComm and associated banks improperly denied refunds to cardholders whose funds were stolen.

InComm denied the allegations but agreed to settle to resolve the dispute and provide restitution to affected consumers.

Sources

1. Claim form
2. Class notice
3. Settlement website FAQ page